Consumer Behavior

Some consumers cutting spend in advance of back-to-school expenses

Photo by istock.com

July 29, 2022

More than one-third, 38%, of consumers are reducing spending to cover the upcoming back-to-school costs.

The news comes amidst rising inflation and high gas costs, according to a National Retail Federation survey conducted by Prosper Insights & Analytics.

"Families consider back-to-school and college items as an essential category, and they are taking whatever steps they can, including cutting back on discretionary spending, shopping sales and buying store- or off-brand items, in order to purchase what they need for the upcoming school year," NRF President and CEO Matthew Shay said in a press release on the survey findings. "The back-to-school season is among the most significant shopping events for consumers and retailers alike, second only to the winter holiday season."

Total back-to-school spending is expected to match 2021's record high of $37 billion.

Families with children in elementary through high school plan to spend an average of $864 on school items, approximately $15 more than last year.

Compared to 2019, back-to-school shoppers are expected to spend $168 more on average, and total spending is up $11 billion.

As of early July, more than half (56%) of shoppers had started shopping for school and college supplies, according to the release.

"We are seeing real shifts in the way people are shopping and spending on back-to-class items since before the pandemic. As a result, retailers are also shifting by bringing in inventory earlier and extending back-to-class offerings," Prosper Insights Executive Vice President of Strategy Phil Rist said in the release.